The recent seller's market appears to be coming to an end in much of the country, including several areas that have been hot spots in recent years.
According to data cited by the Wall Street Journal Online, the recent home seller market appears to be winding down in much of the country, including several areas that have been hot spots in recent years, such as San Diego, Phoenix and Boston.
There are some agents in San Diego who advise their clients to offer buyers' agents a three percent commission, instead of the 2.5 percent rate that has been relatively standard for the past few years. Sellers are increasingly being asked to help with buyers' closing costs as well.
In Phoenix, which has been one of the hottest markets in the US, homes often sold in just twenty-four hours as recently as this summer. However, over the past few months, the number of homes available for sale in Phoenix has increased from about 5,400 to more than 17,000, meaning competition for buyers has become fierce, causing a dramatic increase in price cuts and other marketing tactics.
Boston has also been hit hard, with prices falling dramatically as jobs are lost and more homes begin to flood the market. Mapass, an appointment scheduling service for realtors, estimates that the average number of home showings in Massachusetts fell twenty-five percent in September compared to the same period in 2004.
There are a few areas that are bucking the trend, but across most of America, buyers are gaining more bargaining power than they've had in years. They are asking for concessions that include repairs, painting and redecorating, as well as significant help with closing costs and lower sales prices.
In a sign of the current trend away from the extended U.S. seller's market, buyers at several stores that serve real estate agents in Northern Virginia say they are having trouble keeping "Price Reduced" signs in stock.
It can be difficult for sellers to adapt to this trend, but with rising interest rates, higher gas rates, higher fuel bills and fewer buyers looking at homes, it's inevitable that sellers will have to be more and more innovative if they're going to sell your houses quickly and at the best price. 2006 looks set to see a reversal of the seller's market we've seen over the past few years.
